ECC approve arrangement for K-Electric: ISLAMABAD: The Economic Coordination Board (ECC) that is to meet today (Wednesday) with Finance Preacher Shuakat Tarin will consider the summary of Power Division seeking approval for arrangement of extra power from NTDC (National Transmission Dispatch Firm) to K-Electric.
According to the duplicate of the summary, the Cabinet Committee on Energy (CCoE) approved additional supply of 1,300 MW from national grid to K-Electric on 19th June, 2020.
The CCoE on 27th August 2020 further examined different facets of extra supply of 1,300 MW to K-Electric and also took decisions that include KE, CPPA as well as NTDC will first the tripartite Power Purchase Contract for added power supply of 350-450 MW within one-week period, while keeping the financial settlement provisions in square braces with CPPA’s proposed-language and Finance Department as well as Power Department will certainly speed up activity for completion of ‘conditions connected to monetary negotiation and also submission of the same to the ECC.
Several meetings were held in between KE and CPPA (Central Power Purchase Firm) to finalise the tripartite PPA for extra supply to KE. The argument on numerous clauses of the suggested PPA, nevertheless, could not be dealt with.
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K-Electric desires that the added capability to be provided under the arrangement might be enhanced from 1,300 MW to 1,400 MW.
Power Department supports the proposal of KE CCOE in its decision dated 27th August 2020 routed that “KE and NTDC ought to start taking necessary activities for transmission plans for supply of added 350-450 MW right away to guarantee availability of power supply to Karachi in time for meeting its power demand during height summer period starting from March 2021.”
As well as according to this decision, KE is drawing an extra 350 MW from national grid along with 650 MW to satisfy the emerging demand during the month of Ramazan.
The summary states that K-Electric has agreed in principle to be dealt with on the very same principles as applied to the 10 ex-WAPDA Nightclubs.
The main reasoning for this is that no other arrangement exists under the existing NEPRA policies as well as laws for withdrawal of electricity from the National Grid.
There are still a few areas of dispute, which the Power Department really feels will certainly have a damaging impact upon circular debt.
The issues additionally consist of: KE needs the settlements to CPPA be adjusted versus the subsidy of the Government of Pakistan.
Such change is not supported by the Power Department. K-Electric agrees to offer SBLC as an assurance versus settlement.
Power Division, on the contrary, is insisting on SBLC backed by an ESCROW setup.